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Cloud Computing: It's no Y2K bonanza for IT consulting industry

Thomas Wailgum | Aug. 3, 2010
Consulting, systems integration and outsourcing vendors must prepare themselves for life in the cloud, too, says Forrester Research. For traditional IT service providers, cloud is bad news in the short term, but is it really good news in the long term?

For budget-conscious CIOs, the overall message of the report is that there will be a sort of commoditization of those IT service-provider portfolios, which will result in lower IT costs on "as-a-service solutions for infrastructure and software," note McCarthy and Matzke. Margins for those providers will be pinched—in the short-term.

Long term, however, the analysts predict that those margins will return—at an even high percentage, as CIOs come to rely more on the vendors for higher-value cloud services and support.


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